China will begin approving enterprises to issue corporate bonds especially for the development of the home rental market, the country’s state planner said on Aug 15.

The National Development and Reform Commission (NDRC) made the announcement after nine ministerial departments — including the NDRC and the Ministry of Housing and Urban-Rural Development — last month issued a guideline aimed at boosting the housing market by making more homes available to rent.

Cities are bursting at the seams with migrants and local people who are looking for affordable short-term housing as property speculation pushes up prices.

The guideline called for the issuance of corporate bonds and assets-backed securities to meet the financial needs of home rental enterprises, and urged local governments to introduce preferential policies and strengthen real estate investment trusts (REITs).

The banking industry is keen to provide financial support to home rental enterprises, according to Li Honghan, a researcher from the International Monetary Institute, Renmin University who was quoted last week by the Chinese central bank’s official newspaper, Financial News.

There is potential for banks to offer loans to trusted companies such as Vanke, World Union Properties, and Longfor Properties that specialize in long-term rental apartments or homes with joint property rights shared between the government and buyers, according to Li.